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1. Why is there a tradeoff between quick fiscal stimulus and later inflation?
2. Provide an update on the economy - where is unemployment, what is the outlook for the deficit, what are the overall predictions for 2010 - 2012?
Explain how each of the following would cause the yield curve to shift if between now and next year:
Suppose that natural real GDP is constant. For every 1 percent increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 2 percent.
An increase in input prices for rice production; and an improvement in rice production technology. Use diagrams to analyze the effects of these changes on equilibrium price and quantity.
Plot the wage- setting and price setting equation or a property labelled graph and identity the nature rate of unemployment.
Explain and discuss the mechanisms by which this has occurred, and contrast our experience with: a) the recent performance of many NICs (newly-industrializing-countries) in the last few decades
Compute the price or output combination and the total economic profits which would result if competitors offer clones which make the QuickerBetter market competitive.
Why the price of computers dropped as their power and features has have increased?
Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.
Consider the following Solow model of growth. Both population and work force grow at the rate of n=1% per year in a closed economy.
Construct a table showing the marginal failure reduction (in units) and the dollar value of these reductions for each inspector hired.
Answer the following questions on the basis of the monopolist's situation illustrated in the following graph.
Describe and graph (using AD/AS framework) an example in today's news of fine tuning economy. Assume the MPC in an economy is 0.8, the APC is 0.8 and disposable income is $9 billion. If disposable income increases to $14 billion, what is the new le..
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